Argo Pantes reports 20% increase in exports

JAKARTA (JP): PT Argo Pantes, a publicly-listed integrated textile manufacturer, said that its exports rose 20 percent to Rp 294 billion (US$124 million) last year over 1994.

The company said in its annual report that exports accounted for 62 percent of its total sales last year, as compared to 52 percent in 1994, 49 percent in 1993 and 46 percent in 1992.

Argo's net sales rose by only 3 percent from Rp 463 billion in 1994 to Rp 475 billion last year, while its net profit decreased by 8 percent from Rp 30 billion to Rp 27 billion.

Its exports, however, showed a sustainable growth from Rp 166 billion in 1993 to Rp 243 billion in 1994 and Rp 294 billion last year.

On the contrary, its domestic sales dropped from Rp 219 billion in 1994 to Rp 181 billion last year.

The report said that a relatively stable growth of the company's sales revenue was mainly supported by price increases, particularly of yarns and fabrics, which respectively enjoyed average increases of 20 percent and 15 percent.

The sales of yarns and fabrics respectively represented 47 percent and 53 percent of the company's total sales revenue last year.

The report also said that in terms of volume, yarn sales declined 26 percent, while fabric sales rose 6 percent.

The company said that in an effort to boost its exports in the coming years, it has set up a joint-venture trade company in Hong Kong called Sun Ace Trading Co, Ltd, in which it has 51 percent interest.

Commenting on its decline in profit, the company said it was due to a change in the official accounting system which requires a company to amortize the cost of initial public offering ahead of schedule.

Argo's management proposed dividend payments of Rp 80 per share, which was approved by the shareholders in yesterday's annual meeting. (alo)